Early Mortgage Settlement

[itsmefolks]

I am in a position to repay my Mortgage earlier than required. I have £45k outstanding at the Bank and just wondered if anyone knew if the figure to settle was negotiable?? Thanks anyone in advance. I havn`t asked the bank yet so just putting feelers out so to speak!!

[Tilly2]

You may get an early settlement figure which is less than you actually owe. You need to ask the bank for a figure.

[jno]

or you may have to pay more (to compensate the bank for the interest it won't now get from you). Best ask, as Tilly says.

[itsmefolks]

I guessed one or the other may be the answer!!
As said, best ask the bank then??
Ta.

[Buenchico]

>>>and just wondered if anyone knew if the figure to settle was negotiable?

Not a chance! The lender loses money (from interest repayments) when you pay off your mortgage early, so they won't accept anything less than the due amount,

I also hope that you don't have the problems that I did. I gave the Woolwich a banker's draft to pay off my mortgage and waited for them to send me the deeds. I heard nothing for several months until I eventually got a letter from them. I assumed that it was to do with the deeds but, upon opening it, I found that it was headed 'Notice of Intention to Repossess'! They'd managed to mislay my payment! When they eventually tracked it down they then asked me for another couple of hundred quid to pay the interest that had built up during the intervening period. (It was only when I pointed out that their office, where I was discussing the matter, was just a two minute walk from that of the local newspaper that they suddenly changed their minds).

Then, over a decade later, I tried to sell a small portion of my garden to a neighbour only to be told, by our joint solicitor, that the sale couldn't go through because there was still a charge on the property registered to the Woolwich! Since the Woolwich didn't even exist then, I had lots of difficulties getting that problem sorted out!

Just pay whatever your lender says is due and cross your fingers that they don't screw up the paperwork!
;-)

[granny grump]

Make sure that you are out of any early repayment period if you are not then it is best to wait or you could be hit with a hefty charge.

[Tilly2]

I remember the days when it was best to keep your mortgage running because of the tax relief.

[Peter Pedant]

at the time you took your mortgage you should have been told or indeed asked about early repayment and overpaying...

it is negotiable in the sense that you ask them how much to redeem the mortgage and they tell you and you say yeah OK or no thanks

I echo BC - I had a terrible time with RBS and an offset mortgage

[stokemaveric]

when you get your mortgage statement every quarter [or whenever you recieve them]...the erp should be stated...its usually non-negoitable

[stokemaveric]

ps...say you owe 45k why not pay off 44k?...thus avoiding paying an early repayment figure...and you would be left with just 1k on your mortgage..just a thought...

[ladybirder]

I don't get the point of that sm although I understand what you're trying to achieve. So then itsme would be paying the early repayment figure on £44k instead of £45k. Might as well pay the lot. Early repayment penalties usually apply to any amount you pay early, not necessarily the total.

[stokemaveric]

what i meant ladybirder is pay off a lump sum although not the full amount therefore leaving only a thousand pound mortgage,which would be peanuts to pay per month and within say 6 months it would be paid off in full so therefore not triggering the early repayment figure..there is probably something in the smallprint to say you cannot do this tho lol...

[factor-fiction]

Earl;y repayment figures are often triggered just by overpaying by a certain amount- e.g. by repaying in a 12 month period more than 10% of the outstanding balance. You need to look at the Ts and Cs